Joy Global earnings soar

Joy Global Inc.’s first-quarter earnings rose 39 percent, as the Milwaukee-based mining equipment manufacturer predicted its recent acquisitions will help offset falling demand for equipment from U.S. coal mines.

The company reported a quarterly profit of $142.4 million, or $1.33 per share, up from $102.2 million, or 96 cents per share, a year earlier. The firm’s quarterly revenue increased 31 percent to $1.14 billion.

Joy Global’s first quarter results were below its expectations, but the company raised its sales and profit guidance for the year with the addition of China’s International Mining Machinery Holdings Ltd.

Exceptionally low natural gas prices and a mild winter in the United States have reduced demand for coal to generate electric power, prompting mine operators to idle higher cost underground mines. Underground coal mines in the United States account for about one-quarter of the company’s annual revenue.

“Continued weakness in the U.S. coal market could reduce total revenue by 4 percent to 6 percent,” said Joy Global chief executive officer Mike Sutherlin.
Joy now expects full-year earnings of $7.40 to $7.80 per share on revenue of $5.6 billion to $5.8 billion.